Millions of universal credit claimants are finally set to see higher payments from this week after changes that took effect a month ago. Universal credit and other benefits saw a 10.1% uplift to rates from April 10 in a bid to keep them in line with inflation.
The new higher rates were originally announced last year and the increase is in line with the September consumer price index (CPI) inflation figure. Previously there had been doubt over whether benefits would be uplifted after the UK government ministers refused to commit to raising them despite many low-income households struggling to cope with soaring bills.
But despite the changes being confirmed last month millions of claimants have been forced to wait until this week to see the extra money in their accounts. Here is what you need to know about changes to universal credit and other benefits and why you might have more money from this week. To get all the latest money-saving news straight to your inbox twice a week sign up here.
How much did benefits go up in April?
From April 10 the DWP increased benefits in line with the September 2022 consumer price index (CPI) figure. Announced in chancellor Jeremy Hunt's autumn statement last November, it means benefits are increased in line with CPI of 10.1%. This includes the likes of working tax credit, child benefit, child tax credit, universal credit, attendance allowance, and PIP. The government has also reinstated the pension triple lock meaning pension payments also rose with inflation on this date.
If you’re on universal credit, the monthly standard allowance will be increasing as follows:
- If you’re single and under 25, the standard allowance will go up from £265.31 to £292.11
- If you’re single and aged 25 or over, the standard allowance will increase from £334.91 to £368.74
- Joint claimants’ who are both under 25 will see their standard allowance will go up from £416.45 to £458.51
- While joint claimants where one or both are 25 or over, will see their standard allowance go up from £525.72 to £578.77
You can read the full list of new rates for all benefits here.
Why didn't I receive the extra money in my April payment?
Although the new rates came in from April benefit claimants will not have seen the extra money yet. This is because universal credit is paid monthly in arrears, meaning the money you get each month is for the previous month. So your April payment would have have corresponded to what you were owed for March, and so on.
This was confirmed in a written response by Minister for Employment Guy Opperman MP in parliament this week when he was asked by Dame Nia Griffith whether the inflation-based rise to universal credit was paid to claimants in their April benefit payment.
Mr Opperman responded: "Increases in universal credit come into force from the start of the first assessment period beginning on or after the first Monday of the tax year.
"As universal credit is a calendar monthly assessed benefit that is paid monthly in arrears, a claimant will receive their uprated benefit award in payments due from 16 May."
Therefore, if you haven't received more benefits yet, don't worry. You should start receiving them from this week.
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